KUALA LUMPUR: Magma Group Bhd has received approval from shareholders at its extraordinary general meeting for the proposed issuance of redeemable convertible notes (RCN) to raise up to RM100 million.
The company expects the move to strengthen financial standing and support the long-term growth objectives across its core business segments.
Magma said the funds raised from the RCN will be allocated towards bolstering its working capital requirements, modernising hotel facilities through refurbishment, as well as upgrades, expanding business ventures, and repay existing financing facilities.
The exercise forms a critical part of Magma's broader strategy to enhance its operational capabilities while driving sustainable growth in its core hospitality and hotel management segments.
"The approval of the RCN fund-raising exercise provides us with the necessary financial resources to strengthen our balance sheet, enhance our hotel offerings, and capitalise on growth opportunities within the recovering tourism market," said Magma group managing director Datuk Seri Thomas Liang Chee Fong in a statement today.
According to Magma, the efforts will enhance its competitive edge in the hospitality industry, especially as the company continues to leverage strong market demand for travel and tourism.